Can you place a value on five years’ loyal service? Think about employees in your organization who are at or near that mark. Did John deliver the same level of commitment and value to your organization as Sally?
Look at this example:
“When surveyed, employees consistently will ask for cash, but research shows that it is the least effective form of recognition – How come? Steve is – the model employee. He was surprised when his 10-year service award package offered him cash as an option. That his employer was able to put a price tag on ten years of his life, left him feeling a little cold and confused. …
“You can give a gift valued at 1% of an employee’s salary, and if done enthusiastically, they’ll feel the love. But, give them a 1% bonus or raise and they’re looking at the classifieds. Same money, totally different result – it’s all about perception!”
The research backs this up. McKinsey found that $1,000 given as recognition had 10 times the impact of that same $1,000 given as base compensation.
Letting the employee know very clearly their value to the organization in clearly non-monetary terms is equally as important. As Scott Jeffrey, a professor of management at the University of Waterloo (Canada), has pointed out:
“People just want to feel valued. Employees want to be paid fairly – but what really spurs a willingness to go the extra mile is acknowledging contributions, saying thank you and showing recognition.”
To be meaningful, employee recognition must be fair (in line with performance and used appropriately) and personal (catering to each employee’s unique preferences and desires). Strategic recognition programs are uniquely designed to cater to every employee’s personal preferences to ensure meaningful, relevant rewards everywhere in the world.
How do you “value” your employees at their major anniversary marks? How do you show them you appreciate their efforts every day? Do you do so in a way that tells them, “I know you. I know what you like and don’t like. And I appreciate those differences in you?”
Derek Irvine, Globoforce
